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India extends $1.4 billion assistance to Maldives
News:
India on Monday declared a financial package of $1.4 billion for the Maldives
Important Facts:
- Announcing the financial package, Indian Prime Minister said both sides are connected by mutual faith in democracy and development.
- The financial assistance will be in the form of budgetary support, currency swap and concessional lines of credit for development programmes
- Relations between India and the Maldives deteriorated after then president Abdulla Yameen imposed emergency on February 5 this year.
Significance:
- Cooperation between both countries is necessary for maintaining stability in the Indian Ocean region.
- The package comes as Maldives is facing a debt of $3.2 billion with China. It is expected to boost Male’s global financial standing.
- This will help both countries to increase bilateral cooperation on countering piracy and terrorism.
- It will provide an opportunity to Indian companies in the Island nation.
